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2018 (10) TMI 1745 - HC - Income TaxAddition due to discrepancy found in stock statements - non considering the evidences in form of stock statements which were submitted by the assessee to his banker, Punjab National Bank - Tribunal deleted the addition - HELD THAT - As decided in 2018 (10) TMI 1744 - GUJARAT HIGH COURT Sole ground for making the addition was difference between the accounts maintained by the assessee and the stock statement filed with the Bank. It was noted that the stock statements filed with the Bank pertain to the months of April to August, whereas, the survey took place in the month of September. It was also noticed that the tendency to show higher value in the bank statements to enjoy higher cash credit limit. The entire issue is thus based on facts duly appreciated by the CIT A and the Tribunal. No question of law arises.
Issues:
1. Addition of ?1,59,22,356 due to stock statement discrepancy. 2. Deletion of ?7.48 Crore based on seized diary entries. Analysis: 1. The High Court considered the appeal against the Income Tax Appellate Tribunal's judgment regarding the addition of ?1,59,22,356 due to a stock statement discrepancy. The CIT (A) had partially upheld the addition, but the Tribunal further reduced it based on the physical stock matching the account stock during a survey. The discrepancy was attributed to the difference between the accounts maintained by the assessee and the stock statements submitted to the bank. The Tribunal noted that the stock statements were for different months than the survey and highlighted a tendency to inflate values for cash credit limits. The Court found no legal issue as the facts were adequately assessed by the lower authorities, leading to the dismissal of the Tax Appeal. 2. The second issue involved the deletion of ?7.48 Crore added by the Assessing Officer based on diary entries seized during a survey. Both the CIT (A) and the Tribunal concluded that the entries belonged to another individual, Shri Rajesh P Patel, not the assessee. Rajesh P Patel confirmed this during his examination and supported it with an affidavit. As there was no legal question arising from this factual position, the Court dismissed the Tax Appeal. The judgment emphasized the importance of factual findings and the lack of legal grounds for challenging the lower authorities' decisions.
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